Danfoss Power Electronics Projects Execution - 'One Company – One Way

1 | Global Project Excellence Office - Property of Danfoss Power Electronics
Projects Execution - ’One Company – One Way’
Danfoss Power Electronics
Carsten Baun Høst - Director, Global Project Excellence Office
May 2015
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Carsten Baun Høst
Director, Global Project Excellence Office
Certified IPMA level B
11 years’ experience with Danfoss Power Electronics,
5 years as head of Global Project Excellence Office
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Content
• Introduction
• Danfoss Power Electronics
• Background information
• Development footprint, organization and project organization
• One common development model
• Corporate DBS (Danfoss Business Systems)
• Project model development and deployment across sites
• Project managers
• Change in profile
• Navigate in a global organization
• Project execution across sites
• Learnings and observations
• Top 5 learnings
• Q&A
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Power Electronics
– one of Danfoss’ core businesses
Power Electronics
Standard VLT® Drives
Customised Drives
Power modules
Inverters for Solar & Wind
Refrigeration &
A/C Controls
• Mechanical Controls
• Electronic Controls
• Supermarket Service
• Micro Channel Heat
Exchangers
Commercial
Compressors • Commercial Compressors
• Variable Speed Platforms
• Turbocor
Heating Solutions
• Residential Heating
• Electronic Heating Systems
• Hydronic Balancing Controls
• Burner Components
• Heat Pumps
• Heat Recovery Ventilation
District Energy
• District Energy Controls
• District Energy Stations
• Plate Heat Exchangers
Power Solutions • Mobile hydraulics, electro-hydraulics and full-electric solutions
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Our business is power electronics
… high-quality energy-efficient
solutions that save energy
and optimize processes
Drives
Solar Inverters Power Modules
21million
tons of CO2 are
saved annually
through the solar
powered electricity
systems that are
installed worldwide.
37million
tons of CO2 are
saved every year
by the 4 million VLT®
variable speed drives
installed worldwide from
Danfoss.
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Our customers operate within a wide range of
industries
• Heating, Ventilation and Air Conditioning
• Food & Beverage
• Water
• Industry (e.g. chemical, textile, material
handling and mining, cranes)
• Automotive
• Solar and wind energy
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VLT® Drives electronic motor control
• A frequency converter controls electric
motors so they only run at the speed
necessary to obtain the desired effect
• Electronic motor control can typically save
half the energy in pump and fan
applications
• Today, only 8% of all electric motors
globally are frequency controlled
• Products
• Frequency converters
• Soft starters
• Accessories
37million
tons of CO2 are
saved every year
by the 4 million VLT®
variable speed drives
installed worldwide from
Danfoss.
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Customised power stacks
• The power stack is a high quality power
electrical assembly which ensures the
maximum efficiency from power
conversion systems
• Compact and lightweight design with
ShowerPower® cooling technology
• Modular and scalable design to meet your
needs
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Customised power modules
• A power module is an electronic switch
used in power conversion and motion
control applications
• Cutting edge technology designed to meet
customer requirements
TS16949
standard
meets strict Automotive
Industry requirements
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Global presence
Danfoss Power Electronic NPD centers
• China (Beijing and Haiyan)
• Denmark (Nordborg and Graasten)
• USA (Loves Park and Milwaukee)
• India (Chennai)
• Germany (Flensburg, Bruchsal)
• Vaasa (Finland)
Worldwide sales and service
• 50 Danfoss sales and service companies
• More than 200 partner companies,
distributors, agents and service shops
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Content
• Introduction
• Top 5 learnings
• Q&A
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Danfoss Power Electronics, R&D & S/C footprint
Haiyan
Beijing
Chennai
Pune
Tallinn
Gråsten
Bruchsal
Milwaukee
Loves Park
Vaasa
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Danfoss Power Electronics
Global R&D
Global R&D
Global Project Office
R&D Design Center
China
R&D Design Center
North America
R&D Design Center
Europe
Technology & Innovation
Personal Assistant
R&D Design Center
India
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Global project organization 2010
Soren Ejnar Nielsen
Local Project
Management Office
Project Portfolio
Reporting
Resource
Management
Processes
R&D Processes
Denmark
USA
Consilium
AdminProject committee
DK
Line
Matrix
Project
US
US R&D
CN R&D
DK R&D
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Global project organization 2015
Soren Ejnar Nielsen
Local Project
Management Office
Project Portfolio
Management
Soren Ejnar
Nielsen
Outsourcing
Resource
Management
Processes
Carsten Baun Høst
DK Program 1
DK program 2
DK program 3
US program
CN program
IN program
Global Project
Excellence Office
Denmark
China
USA
India
Denmark
India
Consilium
Special
AdminProject committee
DK
Line
Matrix
Project
US+CN+IN
US R&D
CN R&D
DK R&D
Finland FIN
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Project organization
IPD
(Integrated Product
Development)
• Co-location
• Virtual co-location
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Project model and responsibility
Includes:
Innovation Strategy,
Customer Understanding,
Technology Management,
Ideation Process,
Portfolio Management,
Project Planning
Includes:
Effective
launch
to customer
Value Delivered
Includes:
Project Definition, Project Implementation, Market Launch and Ramp Up, Minor
Product Adaptations
Activities are executed according to a scalable Deliverable Plan and follow the
defined Product Development processes.
Idea
Idea
Idea
Idea
Idea
Idea
IdeaIdea
...
Line C
Line B
Line A
Customer
segment
...
Target
area
Whol
e-
salers
OE
Ms ...Product
lines
...
Line C
Line B
Line A
Customer
segment
...
Target
area
Whol
e-
salers
OE
Ms ...Product
lines
Detailed Design &
Production Preparation
M0
Front End Project Execution
New Portfolio
New
Portfolio
M1
M3 M5
Verification, Production
Preparation & Launch Execution
Specification &
Concept Design
Ramp-up
Running
Production
M7
Cash
M6
At each gate
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Content
• Introduction
• Top 5 learnings
• Q&A
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Processes – our journey
Process project
• Objectives
• Remove non-value added complexity
and waste from the Product
Development Process
• Create a lean scalable project
execution process that can be applied
to projects of different size, risk
levels and platforms
• Can be implemented at all PE
development locations
• Increase efficiency for “paper work”
tasks
• M0-M1 max 16 working weeks
• M1-Release max 12 calendar
months
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Danfoss Power Electronic process
• The PE standard allows for scaling the procedures and deliverables to match the project
complexity and size and it describes:
• The Project Milestone Plan
• The structure of governance for the Integrated Product Development
• Roles and responsibilities within projects
• Milestone documents and approval
• The generic activity overview shows main Integrated Product Development activities
with links to processes and templates allowing for efficient project planning.
• The project milestone deliverables matrix supports governance and product quality
assurance
Weeks -6 -5 -4 -3 -2 -1 M0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 M1
PROJECTMANAGEMENT
PRODUCT
DEVELOPMENTMARKETINGSUPPLYCHAIN
Capturedetailedengineeringrequirements.Writeandreview Requirement Specification(RS)
Req.
Spec.
ProuctClinics (Createmock-up and test it at customerworkshops )
DFMEA workshop(On selectedparts of thedesign)
Perform stakeholder analysis.WriteStakeholder Analysis & Communications Plan
Stakeh.
+ comm.
plan
Capturecustomer requirements. Write,review and approveBasic Specification(GS)
Basic
Spec.
Build Value Propositionpartof TargetG roup Gross Profitoverview (Target GG P),and update commercialpart ofBusiness
Case
U pdate Busi ness Case
Business
Case
Build VariableCost partof Target Group Gross Profit overview (TargetGG P)
Variable
Cost
target
D evelop and reviewGlobalMarket Introduction Plan toM1 level GMI Plan
D evelop and review Fiel dTest scopeandstrategy
Field
TestPlan
Hi gh Level
Concept
Workshop
Lean Voice of
the Customer
Review
Workshop
Define quality goals
Quali ty
workshop
Part 1
Ressource planning and
approvement
Ressource
sheet
Risk&
Uncertainty
workshop
Risk &
uncert.
Log
Projec t
planning
workshop
Schedule
M1-M6 +
M1-M3
Quality
workshop
Part 2
Quality
pl an
Project
learnings
workshop
Project
learnings
3P workshop
Lean Voiceof
the Customer
Workshop
(LVoC)
Kick-off
workshop
Collec tinformationandbuildMarketFac tPac k
Market
Fac tPack
Perform Customer WorkshopsPlanc ustomer involvement for Customer Workshops
Developandreview Prouction Conc ept,write Produc tion RequirementSpecification (PRS)
Prouction
Req. Spec.
(PRS)
Develop and review Sourcing Plan
Sourcing
plan
Collect / writeSupplyChainmilestone
reccommendation
S /C
Milestone
Reccom.
Collect / writeSales &Marketing/ Product
Management milestone reccommendation
S&M / PM
Milestone
Reccom.
Collect / writeProduct Development
milestone reccommendation
PD
Milestone
Reccom.
Review and updateBusiness Case
Business
Case
Ressourc eplanning and approvement
Ressource
sheet
Plan M0-M1 including workshop scal abil ity
Highlevel
pl an
M0-M1
Develop ProductTest Rationale.W rite and reviewhigh levelProductTest Plan(PTP)
Prodcut
Test Pl an
D evelop and reviewproduct conceptdesign,Writeandreview System ProductD esign Specification(System PDS)
System
PDS
Concept
BOM
UpdateExecuti on Fact Pack including project
leader mi lestonerec ommendation
E xecuti on
fact pa ck
EvaluateTarget GroupG ross Profit and perform c orrecting ac tions (Target
GG P)
Target
GGP
Collect milestone
recommendations from R& D,
S&M,S/C
Collec tinformationandbuildExecution Fact Pack indludingprojectleader
milestone recommendation
E xecuti on
F act Pack
Perform project
complexity
assessment
Complexity
assessment
DevelopService Concept Strategy
Service
Concept
Strategy
Generic activity list for each phase
Work-
streams
Deliverable Deliverable Deliverable Deliverable Deliverable Deliverable
1 Business Case 1 UpdatedBus ines s Cas e 1 Updatedbusiness c ase 3 Request for Q-releas e 1 U pdated Business Case Business Cas eupdated
2 ProjectFactPack 2 TopRis ks & related mitigat ion plan 2 Updatedtoprisks & related mitigation plan 3 2 U pdated toprisks & related mitigat ion plan Closed Risk plan
2 Projec t complexity Asses sment 2 Agreed Resource Plan(M1-M6) 2 Agreed Ress ource Plan (M3-M6) 2 Agreed Ressource Plan (M5-M6) Closed projec t in Cons ilium
2 Agreed ResourcePlan / team setting (M0-M1) 1 Commit ted cos t/inv estment budget (M1-M6) 1 Cost /investment budget update (M3-M6) 1 C ost/ inves tment budget update (M5-M6) Closed CAPEX release plan
1 ProjectDeliverables 2 Commit ted Schedule(M1-M6) 2 Commit ted Schedule(M3-M6) 2 C ommitt ed Schedule (M5-M6) Closed Quality plan
1 Projectmilestone recommendation 2 Commit ted Det ailed Schedule(M1-M3) 2 Commit ted Det ailed Schedule(M3-M5) 2 U pdated Qu ality t arget s andmain ac tions Closed handover plan
2 2 Qua lity targets and main actions 2 UpdatedQ uality targets and mainactions 2 U pdated main stak eholderand communic ationplan Closed Sample certificates
2 3 Mainst akeholders & relatedc ommunication 3 Updatedmain stakeholderand communicationplan 3 U pdated team roles and responsibilit ies Project Learnings/ev aluation
2 2 Team roles and responsibilities update 2 Updatedteam roles and respons ibilities 3 Final Handover Plan Closed/agreedc ons essions
2 2 Project Learnings 2 Preliminary agreement onhandover 2 Project Learnings/evaluation Milestonerecommendation
2 2 ProjectD eliverables Project Learnings/ evaluation 2 ProjectDeliverables
2 Projectmi lestone recommendati on 1 ProjectD eliverables Projectmil estone recommendation
Projectmi lestone recommendati on
2
1
1 Milest one recommendation 2 Miles toneRecommendat ion 1 Miles toneRecommendat ion 3 Milestone Rec ommendation 2 Milest one Recommendation Milestone Recommendation
1 Market Fact Pack 1 Updatedvalue proposition, Sales Volumes, Prices 2 Updatedvalue proposition, Sales Volumes, Prices Field Test Evaluation (VLTD rives) 2 U pdated valueproposition, Sales Volumes, Prices Updat ed value proposition, Sales Volumes , Prices
2 3 Cust omer workshopheld 2 Loc al Introduction Plans (LIP) Service manual is ready G MI status report Follow up on LIP implementation ands ales
2 SignedG S 3 Fieldtest plan(VLT Drives) Tec hnical literat ure is ready Market communicationroll-out started Review of infopack age
Market approachand introduction 3 Trainingplan Awarenss t raning delivered Value selling roll-out s tarted Product manager appointed forM6+
Fieldtest, scope& s trategy (VLT Drives) 2 Typecode andproduct matrix inEasyDMS Pre-introduction by Product Manager andMarketing Trainingroll-out started
Servic econcept strategy Pricing andProduct Hierachy Traningplanready f or roll-out
Updatedvalue proposition Technical litt erature 1st draft Market Communic aitonPlan ready forroll-out
Variant economy calculation UpdatedMarket Fact Pack Drives can be configuredin configurator, a cces sories
Value sellingfoundat ion GMI planupdate andst atus VLT s hop is ready with product s andprices
Technical literatures trategy Value sellingargument s highlevel Approval of GS fulf illment report
Traning strategy Sales forecas t updated
Assembly and disassembly workshop
2
3 Milest one recommendation 3 Baselined Requirement Spec ificat ion 3 Detailed des ign des cription Product Approval 3 Product Approval Finalis ed PS
2 3 Concept/archit ecture description 3 Product documentation(prototype level) Product documentation (Pilot lev el) 3 Product Specif ication(PS) Updat ed product documentation
3 Concept strategies, dependenc ies and constraints 3 Bill of Mat erial (BOM) Field Test Evaluation (DSI) 3 Product doc ument ation(1. s eries level) Defect evaluation report
3 Concept BOM & Variable Cost Target 3 Working Protot ype 3 Milest one recommendation Milestone recommendation
1 Product Test R ationale 1 Environmental assessment 3
3 Fieldtest, scope& s trategy (D SI ) 3 Updated/ det ailed product t est plan 2
2 Miles toneRecommendat ion 3 Fieldtest plan(DSI)
2 R&D as sess ment / milestone rec ommendation
3
3 Milest one recommendation 3 Miles tonerecommendation 3 Miles tonerecommendation 3 Milest one recommendation Milestone recommendation
3 Capturedrequirement s 2 UpdatedCapturedrequirements 3 Handover procedurerequirements 3 C apacity handshake CloseSCRS
2 Strategy 2 UpdatedStrategy 3 3 H andoverdocument f or equipment Project to Operations handoverdocument
Concept 2 Designand specification 2 Site ac ceptancet ests Follow up on forecast and compare with BC
Q ualit y level andiss ues on predessor/s imilar product s Quality targets UpdatedQ uality targets Samplecertif icate status O verall qualit y evaluation and quality plan update IFGh andover
CAPEX estimat es/release UpdatedCAPEX Handoverreadiness evaluation (running product ion) U pdated CAPEX Closebudget andressourceaccount s
VC est imates UpdatedVC U pdated VC Failureand potentials follow up (ITT)
Planf or prototypes (mix, quant it y, size) Planf or pilot s (mix, quant it y, size) Approved 1. series Clear quest update
Planf or HAWA, accessories and spareparts Clean up obs olete part no's introduced by project
Planf or local/global Q -release
Planf or ramp up/down
Planf or Support trainingand equipment
M6M3
Sales &
Marketing /
Product
M anagement
Supply Chain
M5M1M0
Project
M anagement
PD
(HW, SW, CE,
Test)
Q Release
PE project milestone deliverables
501G0401
PE project
organization
and New
Product
Development
PE standard
Process descriptions
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Processes
• Danfoss Business Systems
• Programs DPP, DSP, FPP, PDP
• PDP - Product Development Program
• Across divisions:
• Same Principles & milestone definitions
• Same overall processes – establishing a
robust framework for project execution:
• value proposition (specifications)
• customer involvement
• concepts (product, supply chain etc.)
• launch strategies & plans
• Annual audits – focusing on Principles
• All managers from CEO level and down
are trained and certified in the model
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22 | Danfoss Business System
Good practice is fundamental to consistent
high performance
Performance
Practices
Set targets
Use common tools &
processes based on
best practices
Follow up
Build
capabilities
The PDP audit measure’s practice rather than project performance…
…because good practice is fundamental to consistent high performance
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Deployment in a global organization
• Pilots (2010)
• Based on the standard and the milestone
delivery plan we:
• Trained all the project team members
• Used all the new methods and tools
• Reviewed the pilots
• Corrected and updated the material
• Live full scale (2011)
• All new projects had to follow the new
model
• Local Navigators (facilitators)
introduced
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Deployment in a global organization
• Full operation 2015
• All projects are executing according to
the processes and model
• All projects have a Navigator assigned
• Audits are taking place – approximately
same score on each site
• Only minor adjustments are being
discussed
• Focus is on the ”soft” competences – to
drive performance
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Content
• Introduction
• Top 5 learnings
• Q&A
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Project manager role
in a global project setup
Our challenges -> Change in profile
• From developing a product to delivering
on a business case
• Leading from a distance
• Leading Others, Leading Leaders in
different time zones and cultures or
project maturity
• Virtual meetings, issues with:
• Time zones, IT support etc.
• Leading in a mix of internal and external
(outsourced) responsibility
• Network
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Project manager role
in a global project setup – what are we doing
Our challenges -> Change in profile
• From developing a product to delivering on
a business case
• Business model understanding - training
and support from controlling
• Leading from a distance
• Face-to-face kick-off
• Core team training
• Clear roles and responsibilities
• Same processes
• Leading in a mix of internal and external
(outsourced) responsibility
• Network – global summit, formal pairing
of project managers from different sites
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Content
• Introduction
• Top 5 learnings
• Q&A
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Project execution across sites
Illustration
Haiyan
Beijing
Chennai
Pune
Tallinn
Gråsten
Brucksal
Rockford
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Typical elements to discuss – Learning’s
• Decision making
• Project management role
• Line management role
• Project organization and related complexity
• Roles & responsibilities
• Communication
• Cultural awareness
• Team collaboration – across sites
• Team commitment and team spirit
• Planning
• Workshop participation
• Monitoring progress
• Managing Change
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“project level”
• Cross functional events to drive alignment &
progress (time-boxed’
• Detailed project complexity assessment ->
planning & staffing accordingly
• Different urgency (priorities) across the sites
• Agreed roles & responsibilities between the teams
on different sites
• High level plan with well defined integration points
• Local responsibility - ”local project lead”
• On-site/’face-to-face’ meetings and extra
leadership resources to build relationships - to
create the team spirit (avoiding ”them” and “us”)
• Time zones challenges - plan for communication &
collaboration
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“governance level”
• Local responsible PMO manager
• Clear and agreed escalation path
• Close cooperation on management level
across all sites
• A Steering Committee with a clear
mandate
• Cultural training (for the whole team)
and at all sites involved
• Communication – different needs
• Different competence levels = different
needs for review and support – toxic
assumptions
• “Them” and “us”
• Outsourcing model
• KPI definitions
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Top learnings
Common processes / understanding
- Creating a common process framework requires dedicated/full time resources
- Process Navigator as a role – acknowledging the value of professional facilitation and
awareness of need for local/cultural adjustment
Project Manager role and competences
- Must have real influence and responsibility (accountability)
- Need for constant competence development to meet the challenges of a global setup
- Understanding business development is essential
Project Execution
- Addressing project execution complexity is a MUST
- Understand consequences of different levels of organizational project execution maturity
- Prioritize face-to-face meetings in the startup phase
- Need for local lead/responsibility (accountability)
Solid governance
- Escalation paths must be clear - Quick decision making is key
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